CareDx (NASDAQ:CDNA) Sets New 52-Week High - Time to Buy?

Key Points

• CareDx shares reached a new 52-week high of $73.43, significantly above their 50-day and 200-day moving averages. The stock has a $3.78 billion market capitalization and a P/E ratio of 35.31.
• Analyst sentiment remains mixed: Canaccord Genuity raised its price target to $80 and Craig Hallum upgraded the stock to Buy, but the overall consensus is still Hold with an average target of $58.40.
• CareDx reported strong quarterly results, with earnings of $0.37 per share versus the $0.23 estimate and revenue of $131.95 million, up 52.2% year over year. Several major hedge funds, including BlackRock and Bamco, established new positions, while two directors sold shares under a pre-arranged trading plan.

CareDx, Inc. (NASDAQ:CDNA - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $73.43 and last traded at $72.4250, with a volume of 415,201 shares trading hands. The stock had previously closed at $70.53.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Craig Hallum raised CareDx from a "hold" rating to a "buy" rating and set a $64.00 target price on the stock in a research note on Monday, August 3rd. Weiss Ratings upgraded CareDx from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Zacks Research lowered CareDx from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Canaccord Genuity Group upped their price target on shares of CareDx from $65.00 to $80.00 and gave the stock a "buy" rating in a research note on Monday, October 19th. Finally, HC Wainwright reiterated a "neutral" rating and issued a $46.00 price target on shares of CareDx in a research note on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $58.40.

CareDx Price Performance

The company has a market cap of $3.78 billion, a P/E ratio of 35.31 and a beta of 2.38. The company's 50-day moving average is $58.10 and its two-hundred day moving average is $32.75.

CareDx (NASDAQ:CDNA - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.37 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.14. The company had revenue of $131.95 million during the quarter, compared to analyst estimates of $114.05 million. CareDx had a net margin of 24.23% and a return on equity of 2.87%. The firm's revenue for the quarter was up 52.2% on a year-over-year basis. During the same period in the previous year, the business earned ($0.16) EPS. Equities research analysts anticipate that CareDx, Inc. will post 0.47 EPS for the current year.

Insiders Place Their Bets

In other news, Director George Bickerstaff, III sold 20,000 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $46.28, for a total transaction of $925,600.00. Following the transaction, the director directly owned 134,061 shares of the company's stock, valued at $6,204,343.08. This represents a 12.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Christine Cournoyer sold 16,000 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $46.94, for a total value of $751,040.00. Following the sale, the director directly owned 42,943 shares in the company, valued at $2,015,744.42. This trade represents a 27.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CareDx

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of CareDx during the 2nd quarter valued at about $137,219,000. Bamco Inc. NY bought a new stake in shares of CareDx in the second quarter worth approximately $55,214,000. Bank of America Corp DE purchased a new position in shares of CareDx during the second quarter valued at approximately $16,297,000. Palo Alto Investors LP purchased a new position in shares of CareDx during the second quarter valued at approximately $15,158,295. Finally, Jupiter Topco LLC purchased a new position in shares of CareDx during the second quarter valued at approximately $9,673,000.

About CareDx

CareDx, Inc is a healthcare diagnostics company focused on improving the care of organ-transplant patients. The company develops and commercializes noninvasive tests and digital tools intended to help physicians assess transplant-organ health, identify potential rejection, and support long-term patient management.

Its offerings include AlloSure donor-derived cell-free DNA tests for monitoring transplant recipients, AlloMap gene-expression testing for heart-transplant patients, and HeartCare, which combines AlloMap and AlloSure results.

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